WS #7029

The dominant market narrative remains the US-Iran conflict, with the situation ESCALATING. Trump has dismissed Iran's response to peace proposals as 'totally unacceptable', and Iran has deployed submarines in the Strait of Hormuz, while CENTCOM reports redirecting 62 commercial vessels under the blockade. Saudi Aramco's CEO warned that a blocked Strait of Hormuz could reduce crude oil supply by 100 million barrels per week. This is driving oil prices higher (WTI +1.48%, Brent +1.73%) and weighing on equities, with Wall Street slipping at the open. The J.P. Morgan Private Bank mid-year outlook explicitly calls the Strait of Hormuz closure 'the largest oil supply shock since World War II', reinforcing the severity. On the macro data front, US Existing Home Sales rose 0.2% MoM in April (vs -2.9% prior), and the Conference Board Employment Trends Index increased to 105.77, signaling labor market resilience. In corporate news, Brookfield Asset Management is investing $500M in OpenAI's deployment platform, Broadcom is reportedly seeking a record $35B private credit financing for AI infrastructure, and Ripple secured a $200M financing facility from Neuberger Berman. Crypto ETPs saw $858M in inflows last week. The hantavirus outbreak on the MV Hondius cruise ship continues to spread, with new cases in US and French nationals, but this remains a low-probability systemic risk. The prevailing macro theme is oil-driven inflation fears and geopolitical uncertainty, with the US-Iran situation showing no signs of de-escalation.